PROJECT REPORT

ON

COMPARISION OF PROMOTIONAL STRATERGIES FOLLOWED BY

DIFFERENT REAL ESTATE COMPANIES IN KURNOOL TOWN

SUBMITTED BY

B. Aparna

G. Monika

G. S. Nagendra Rao

Swathi Thumula

R. Krishna Chaitanya

OF

HYDERABAD

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

HYDERABAD

UNDER THE GUIDANCE OF

Mr. PRASHANTH AARE

(Faculty)

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ACKNOWLEDGEMENT

We give my most sincere thanks to JR Housing Developers Pvt. Ltd., Agri gold

properties, Raaga Mayuri Builders, Maruthi builders for giving there inputs for our project

completion.

We would like to express my deepest gratitude and sincere thanks to my Project Guide

Mr. Prashanth for his valuable suggestions, scholarly guidance, constructive criticism, and

constant encouragement at every step of the project

We give my sincere thanks to the Dean Mrs. Shirani Nayar. I am particularly indebted

greatly to her.

We feel immense pleasure to thank IIPM Hyderabad for providing a platform to enrich

my experience by giving me an opportunity to work on this project.

Finally we would like to thank my family and friends for their loving support and

encouragement. We would like to express my deep appreciation for their unstinting patience and

understanding.

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DECLARATION

We hereby declare that all the information that have been collected, analysed and

documented for the project is entirely my authentic possessions. We would like to categorically

mention that the work here is not purchased nor acquired by any other unfair means or from any

external source. The data and information presented in this report are accurate and updated to the

current data, to the best of my knowledge.

However for the purpose of my project, information already computed in many sources

has been utilized

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INDEX

S. NO. PARTICULARS PAGE

NO.

1 PREFACE 5

2 EXECUTIVE SUMMARY 8

3 AIM OF THE STUDY 10

4 RESEARCH METHODOLY 11

5 INTRODUCTION TO THE TOPIC (REAL ESTATE) 15

6 PROMOTIONAL STRATEGIES 21

7 ABOUT COMPANIES 23

8 DIFFERENT PROMOTIONAL STRATERGIES ADOPTED BY

DEVELOPERS IN KURNOOL

34

9 FACTORS INFLUENCING CUSTOMER BUYING

BEHAVIOUR

38

10 FINDINGS 45

11 SUGGESSTIONS 45

12 BIBLIOGRAPHY 46

13 ANNEXURE 47

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PREFACE

The real estate sector in the country is one of great importance. According to the report

of the Technical Group on Estimation of Housing Shortage, an estimated shortage of 26.53

million houses during the Eleventh Five Year Plan (2007-12) provides a big investment

opportunity. India leads the pack of top real estate investment markets in Asia for 2010,

according to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-

profit education and research institute, released in December 2009. The report, which provides

an outlook on Asia-Pacific real estate investment and development trends, points out that India,

in particular Mumbai and Delhi, are good real estate investment destinations. Residential

properties are viewed as more promising than other sectors. While, Mumbai, Delhi and

Bengaluru top the pack in the hotel 'buy' prospects as well.

Andhra Pradesh is a south-eastern state in India. It belongs to the Dravidian linguistic-

cultural region of South India. The cities like Hyderabad, Visakhapatnam are highly developed

and there are excellent education facilities. Many educational institutions are being built up.

Andhra Pradesh has started an elite organization called APSHCL to formulate and implement

Weaker Section Housing Programs. Houses are being constructed under various schemes to

provide affordable housing facilities to homeless local residents.

Andhra Pradesh Real Estate Market

Andhra Pradesh is striving hard to become the topmost state and for that matter they are

investing heavily in information technology. Hyderabad, the capital city, has scaled new heights

and is now at the summit of technological glory. Apart from this there are excellent medical

facilities. Business is developing at a very fast rate and many new companies are investing here.

The path breaking success of the city in every circle of human activity has led people from all

corners of the country flocking to different cities of the state. Thus, the pressure is mounting for

more housing units and better civic amenities.

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Residential Properties in Andhra Pradesh

It is also a place for tourist attraction because of the ancient monuments, sculptures,

zoological parks and leisure spots. Various means of transport have been developed and fast

connectivity between different parts of the state has been ensured. The state offers a much better

lifestyle compared to other parts of the country. Hence, it is being hailed as one of the most

exciting places in India to live in. As a consequence of it, we find people searching for real estate

properties either for sale or for rent.

As the demand for residential properties in Andhra Pradesh is rising at an unabated pace

in its different cities, the capital values of the properties available for residential use are creating

new records. Even the rental values are found to be escalating at a much faster rate. However,

the effort being taken by housing boards to develop more housing projects and ensure the

availability of apartments and flats is bringing new hopes to many home seekers.

We also find many leading builders of the country developing townships and condos near

the cities of importance, such as Hyderabad, Secunderabad and Visakhapatnam. The houses

under these projects are being constructed with an aim to provide housing facilities to every

category of home buyers. You can also get financial assistance through home loans from leading

banks for purchasing such houses.

Andhra Pradesh Property Dealers

While it is logical to buy flats, apartments, villas, bungalows, duplexes etc for the people

who intend to stay permanently in a particular city of the state, the people with the least intention

to stay longer may opt houses on rent or on lease. The presence of property dealers and real

estate agents is a great help for the people seeking rental homes anywhere in the state. You will

also find the services of property dealers helpful in several other ways.

Andhra Pradesh section of India Housing focuses on all the issues related to buying a

house in Andhra Pradesh like housing companies in Andhra Pradesh, property dealers in Andhra

Pradesh, real estate agents, home loans, Andhra Pradesh architects, interior decorators, building

contractors in Andhra Pradesh, the list can go on and on.

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KURNOOL TOWN:

Kurnool is a city in the Kurnool district of Andhra Pradesh state in southern India, about

212 kilometers (132 mi) south of state capital, Hyderabad. It is the administrative seat of the

district. Kurnool is the gateway to Rayalaseema and the largest city in the area, with a population

around 669,000. From 1 October 1953 to 31 October 1956, Kurnool was the capital of Andhra

State. It has many educational institutions and is also a major hub for banking and insurance

companies.

The name Kurnool is said to be derived from Kandenavolu or Kandanavolu (a Telugu

name by which it is referred to in the inscriptions and literature of the past)pronounced as

karnooluu. According to the legend, in the time of the Western Chalukyas of Badami in the 11th

century AD, the Vadderas who carted stones for the construction of the temples at Alampur (also

known as Dakshina Kasi in Mahaboobnagar District), used the site on which the city now stands

as a resting place before crossing the Tungabhadra. The strategic position led to the formation of

a small settlement on the spot which subsequently came to be known as Kandenapalli,

Kandenolu and Kandenavolu, the city of Kandena or grease. The site which was used as a

halting place by the Vadderas in those days is still known as Bandla Metta (Bandla means carts

and Metta means headquarters or halting place). Today this is a street in the Old Kurnool city.

Now this place name has become to "Bandimetta".

In some of the inscriptions, Kurnool is referred to as Kannadu or Karu Nadu with Karu

meaning black and Nadu meaning territory. Other scholars argue that Kurnool derived its name

from Kallu which means stone and Nadu which means territory. Yet others say the name

Kurnool has been derived from Skandanavolu, the city of Skanda or Kumaraswamy. The

worship of Skanda in Andhra Pradesh dates back to ancient times. The cities were also named

after Skanda, the chief God of War of the Devas.

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EXECUTIVE SUMMARY

In the "dog-eat-dog" world of business, real estate can be one of the most competitive fields.

Trying to find new ways to advertise your business can be difficult. Everyone thinks of signs for

real estate advertising, but how do you make yourself more noticeable. There are many ways

that you can do additional advertising, some for very little money. One hint to consider creating

a logo or, if you are part of a national company, making sure that you’re advertising looks like

your signs. This reinforces the psychological connection for your potential clients. You may try

things like email "blasts", advertising on the local TV and radio stations and other such avenues.

The problem is that everyone else has done the same thing. You are still blending in with

everyone else. We put together some ideas that you may want to try for advertising that are not

as common. Of course, always remember that the signs for real estate are a great base to be built

on.

Work with your visitor’s center or local hotels and sponsor a map of the area.

Write an article about the real estate industry from a unique angle and submit it to

magazines and other industry related publications

Affiliate yourself with another business and help sponsor a brochure, menu or other

literature that is handed out. If it is a tourist attraction the brochure could also be put at

your local visitors center or a focal point of tourist traffic

High schools or sports organizations sometimes have special activities that they print

programs or brochures for. Make sure and support the local kids with an advertisement.

This makes a good impression on many parents.

Work with a non- profit organization. Habitat for Humanity is one that will help

associate you with houses as well as giving back to the public. There is sometimes

national coverage of these projects, which gives you a larger potential customer pool.

If you have a military installation in your area talk to them. They assist incoming

personnel finding homes, as well as the members that are retiring. Many people that have

been stationed in an area just before retirement decide to stay. The installations typically

give out lists of businesses that they recommend for their members. Work with them to

get on that list!

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Align yourself with a company such as a home improvement contractor. Work together

to cross promote your businesses.

Have a give away at an open house. Each person that attends is entered into a drawing.

You may be able to get a free prize to give if you align yourself with a company and

allow them to do some advertising that will not detract from the open house. A

decorative piece or artwork would be unusual, and could be used in the showing before

the give away.

Align with an interior decorator and have them give tips that relate specifically to the

house you are showing. Be sure to advertise their business as the one who has the

expertise to decorate that specific house. If you can build up a strong relationship you

may be able to do a temporary decorating in the home and either have it there for

prospective clients to see, or if the decorator is not comfortable with that, you can get

good quality photos and blow them up. They can then be hung in the appropriate room to

show the "potential".

Become involved in local HOA's and keep your finger on the pulse of their concerns.

Work with them to help make improvements if possible. They may come to trust you and

recommend you to others, or even point you in the direction of potential clients that are

their friends.

Give a free gift to the client who purchases a house. Make it appropriate to the new home

owner and the home if possible. If nothing that seems suitable comes to mind give a gift

certificate to a home decorating store, or perhaps a certificate for a massage for after the

move is complete.

Become involved in the community. Whether you choose Scouting, the local theater

group or a gourmet club you are interacting with the community. Whenever possible try

to choose an organization that is your target audience. These are just a few ideas that will

make you stand out from your competitors. Of course, don't forget to advertise with your

signs for real estate. They are the foundation that will allow you to build these other

ideas, and thereby your business.

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AIM OF THE STUDY

To analyze and evaluate the promotional strategies of Real estate companies in Kurnool

Perception and purchasing behavior of customers in real estate

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RESEARCH METHODOLOGY

Secondary data would consist of widely available resources like

1. Newspapers

2. Magazines

3. Journals

4. Websites

5. Books etc.

Primary data: Questionnaire is designed and survey was done to get the perception and

purchasing behavior of the customers in Kurnool.

METHODOLGY

Sampling Method – Convenience method of sampling was used for face-to-face survey while

snowball sampling method was used while conducting telephonic survey.

Sample Size

People living in Kurnool Town are the target with sample size of 50 but only 25 of them are

interested to invest in Kurnool town

Data Collection Method

Data was collected by using primary as well as secondary methods of data collection.

Primary Method

Face to Face interview

Questionnaires

Telephonic Survey

Survey through E-Mail

Survey through Reference

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Secondary Method

Magazines on Property

Internet sites on Property

Internet websites of popular property developers of India

Factors and Parameters Chosen for Survey

The questionnaire was prepared in such a way so as to achieve all the three objectives

mentioned above. In order to attain the objectives five major questions were included in

the questionnaire along with few general questions.

Factors were

Brand name – Brand name is something that immediately comes into your mind when you

think of any product. Even in case of purchase of property, brand name plays a major role. Many

people to prefer buy the property developed by well-known and reliable developers. Moreover

properties developed by established developers help buyers in getting the best returns, as these

properties can be sold any time at a premium.

Advertisements – It’s an old belief that advertisement can sell literally anything. In order to

ascertain whether it’s true for property or not, it was also included as a first pull factor in the

questionnaire.

Location – This deals with property and connectivity to road links, airports, railway stations and

bus stops. The more approachable the property is to the public transport terminal, the more value

it holds. Proximity to the Central Business District also plays an important role in this aspect.

Affordability – Budget plays an important role in short listing the options available in the

market. Its only when the budget is decided, one starts looking for the available options in the

price range decided.

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Some other factors were:

Need for More Space

Need for Better facilities

Need for Healthy environment

Want for Quality Construction

Lack of facilities in previous residence

Proximity to Workplace

Job transfer

Parameters were

Location - This parameter includes all the locational factors such as proximity to central

business district, to schools, to hospitals, existence of huge shopping malls, etc.

Business Hub – This parameters helps in analyzing the perception that people have about the

job opportunities and business prospects available in different cities.

Quality of Living – This parameter helps in analyzing what people think about the style of

living prevalent in the 5 cities included in NCR.

Law and Order – This parameter helps in analyzing what people about the safety and security

situation prevalent in the 5 cities chosen for the survey.

Infrastructural Development – This parameter helps in analyzing how respondents rate 5

different cities chosen for the survey, on the basis of conditions of road and highways,

availability of public transport, etc.

To know the degree of importance of various factors, which people consider while purchasing

the property,

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Factors were

External Factors

Price Range

Connectivity to Public transport

Proximity to workplace

Availability of loan

Easy Payment Plans

Rate of Interest

Resale Value

Clear title of property

Proximity to School

Proximity to Hospitals

Proximity to Entertainment Centers

In Locality Factors

Peaceful Locality

Pollution Free environment

Population/occupancy

Quality of Construction

Maintenance

Suitability of Home Type

Utilization of space

Water Availability

Power Backup

Safety-Security

Recreational facilities/Sports Complex

Club Membership

INTRODUCTION TO TOPIC

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INTRODUCTION TO REAL ESTATE:

Construction sector has been the focus sector for some time as its impact on the economy

is big by virtue of its being a huge employment generator. The real estate market is booming. Its

growing at around 12% per annum. Today its boom time in the real estate market and

homebuyers couldn’t have asked for a better opportunity to buy a home. Indian developers are

now not talking of anything less than world class. Infrastructure and economic development of

some cities as well as the housing shortages are driving the boom. There is a fundamental

change in the approach of the buyer, developer and the government. They all are seeking quality

development. The middle class demands the best that money can buy. With the competition in

the market, developers have to deliver the best within specified time frames and the government,

discharged from the duty of construction has to keep everyone’s interest at heart.

The term ‘real estate’ is defined as land, including the air above it and the ground below

it, and any buildings or structures on it. It is also referred to as realty. It covers residential

housing, commercial offices, trading spaces such as theatres, hotels and restaurants, retail

outlets, industrial buildings such as factories and Government buildings. Real estate involves the

purchase, sale, and development of land, residential and non-residential buildings. The main

players in the real estate market are the landlords, developers, builders, real estate agents,

tenants, buyers etc. The activities of the real estate sector encompass the housing and

construction sectors also.

The real estate sector in India has assumed growing importance with the liberalization of

the economy. The consequent increase in business opportunities and migration of the labour

force has, in turn, increased the demand for commercial and housing space, especially rental

housing. Developments in the real estate sector are being influenced by the developments in the

retail, hospitality and entertainment (e.g., hotels, resorts, cinema theatres) industries, economic

services (e.g., hospitals, schools) and information technology (IT)-enabled services (like call

centers) etc. and vice versa. The real estate sector is a major employment driver, being the

second largest employer next only to agriculture. This is because of the chain of backward and

forward linkages that the sector has with the other sectors of the economy, especially with the

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housing and construction sector. About 250 ancillary industries such as cement, steel, brick,

timber, building materials etc. are dependent on the real estate industry.

Features of Real Estate Markets:

In particular, the unique features of the real estate market must be accommodated. These

include:

• Durability

• Heterogeneous

• High transaction costs

• Long time delays

• Both an investment good and consumption good

• Immobility

Overview:-

Indian real estate sector is growing at thirty percent annually. The liberalized urban

policy frame work along with a stable home loan rates by Banks helped this growth phase to

sustain. The parameters for investment are changing and more FDI is expected to flow into this

sector in the coming period.

The Indian real estate sector has witnessed a resounding growth in recent years due to

factors like liberalization of urban policy and increased competition in the home loan segment.

Also the booming Indian economy, favorable demographics transition and liberalized foreign

direct investment (FDI) regime acted as a catalyst in this growth phase. Growing at a rate of 30

per cent, the real estate sector has emerged as one of the fastest growing investment areas for

domestic as well as foreign investors. The sector will remain as a booming sector and more

investment is expected in the coming years.

Construction and allied sectors are considered as one of the largest employing sector in

India (including construction and facilities management). This vital sector is linked to about 300

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ancillary industries like cement, brick and steel. So this sector has a strong backward and

forward linkages and the growth will translate into an over all positive impact on these ancillary

sectors too. Resultantly, a unit increase in expenditure in this sector has a multiplier effect and

the capacity to generate income as high as 4.5 times.

According to Mckinsey report the average profit from construction in India is 18%,

which is double the profitability for a construction project undertaken in the US. Five per cent of

the country’s GDP is contributed by the housing sector. In the next three or four or five years

this contribution to the GDP is expected to rise to 6%.

According to Knight Frank Research, the new residential space distribution of Pan India

will be more then that of before. The NCR will be having maximum of distribution all over India

that is 35%. Total supply all over India is 530.5mn.sq.ft. Distribution in all the places is as per

the demand and availability of space.

According to ‘Housing Skyline of India 2007-08’, a study by research firm, Indicus

Analytics, there will be demand for over 24.3 million new dwellings for self-living in urban

India alone by 2015. As a result of this, this real estate sector is likely to throw huge investment

opportunities. In fact, an estimated US$ 25 billion investment will be required over the next five

years in urban housing, says a report by Merrill Lynch.

With the significant investment opportunities emerging in this industry, a large number

of international real estate players have entered the country. Currently, foreign direct investment

(FDI) inflows into the sector are estimated to be between US$ 5 billion and US$ 5.50 billion.

According to Cushman & Wakefield, foreign investors have raised nearly US$ 30 billion since

March 2005 for investing in Indian real estate. 100% FDI is allowed under automatic route in

townships, housing, built-up infrastructure and construction development projects (which would

include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals,

educational institutions, recreational facilities, city and regional level infrastructure) subject to

certain guidelines. Leading companies like Carlyle, Blackstone, Morgan Stanley, Trikona,

Warbus Pincus, HSBC Financial Services, Americorp Ventures, Barclays and Citigroup are

some of the international players who have entered into Indian reality market. Real estate

accounted for 26 per cent of total value of private equity investments, with 32 deals valued at

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US$ 2.6 billion. And according to industry estimates, another US$ 10-20 billion would pour into

the sector in the next three years.

Current scenario:-

The unending euphoria of real estate sector in India witnessed during the last few years is

finally starting showing signs of ebbing. The talks of new malls, complexes, residential projects

being built are all now being kept under bags.

There is an overall slowdown in demand across India as has been experienced by

industry players. Property prices and rentals are correcting which have led to the erosion in

market capitalization of many listed players like DLF and Unitech.

The slowdown is aided by the fall in stock markets as wealth creation does not happen

and there is lack of capital among investors to invest in real estate projects. Also, to adjust their

share market losses, many investors are forced to sell off their real estate properties.

Other factors that have led to the slowdown is the increase in interest rates leading to

higher costs. Also income levels have not risen in proportion to the increase in property prices

thus forcing many potential buyers out of the market.

Also with rising input costs of steel, iron and building material, it has become unviable

for builders to construct properties at agreed prices. As a result, there may be a delay in project

completion leading to financial constraints.

Many residential buyers are waiting a price correction before buying a property, which

can affect development plans of builders. Also with IT industry continuously experiencing a

slowdown, there may be further constraints on residential as well as commercial demand since

IT/ITES segment accounts for 70% of the total commercial demand.

So real estate players may continue to face liquidity concerns in future due to rising

costs and unfavorable stock market conditions for further capital raising.

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Only those players who have achieved substantial revenues from past deals could expect

to rise against the tide. But the scenario may get worsen if the upcoming properties are not sold

off as it may lead to a financial crisis in the property market.

Participants in Real Estate

Participants are very important in Real estate as they are the Backbone of Real Estate

market. They are the one who carry out transactions in real estate market. They are the one who

are involved in Real Estate. There are various individuals who all take part in Real estate. They

are as follows:-

OWNER: These people are pure investors. They do not consume but rent out or lease the

property to someone else. They purchase houses or commercial property as an investment and

also to live in or utilize as a business.

INVESTORS: - A real estate investor is someone who actively or passively invests in real

estate. An active investor may buy a property, make repairs and/or improvements to the

property, and sell it later for a profit. A passive investor might hire a firm to find and manage an

investment property for him. Typically, investors choose real estate for several reasons: cash

flow, appreciation, depreciation, tax benefits and leverage.

DEVELOPERS: - Developers purchase a tract of land, determine the marketing of the property,

develop the building program and design, obtain the necessary public approvals and financing,

build the structure, and lease, manage, and ultimately sell it.

CONTRACTORS: - Real estate contractor can be described as a person, who carries out a

contract that is related to building of architecture or providing the building material. In some

cases, a contractor also provides labor for the construction purposes. All real estate contractors

are professionals and licenses that permit them to perform certain tasks as mentioned in the

license. Some real estate contractors also provide services related to remodeling of buildings,

roofing etc. Some contractors also provide services after the completion of the construction work

i.e. maintaining the structure etc.

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BANKERS: - Real estate investment banker provides innovative approach to financing of real

estate. There are many types of services carried out by real estate investment banker and these

services are far beyond the traditional banking services being offered. For example, structuring

of various types of real estate projects is one main type of service provided by real estate

investment banker.

AGENTS: - Real Estate Agents are employed by the seller to get the best price and conditions

for the seller. Real Estate agents have been helping buyer to buy and seller to sell the property.

Real Estate agents are Present in every corner of world. They all act as middlemen between the

Buyer and the seller.

BROKER: - A Real estate broker finds buyers for those wanting to sell real estate and finds

sellers for those wanting to buy real estate. Real estate brokers help sellers market their property

and sell it for the highest possible price; they also help buyers purchase property for the best

possible price. Once the broker successfully finds a buyer, the real estate broker receives a

commission for his or her service.

LESSOR: - They have the complete ownership of the property but they lease or mortgage their

property to someone else. High amount of rent is charged by the renters. These people are pure

consumers.

MORTGAGER: The security created on the property by the lender, which will usually include

certain restrictions on the use or disposal of the property (such as paying any outstanding debt

before selling the property).

TENANT:-When a land owner or a house owner allows some one to use his/her land or house in

some way for some time period, then the person who takes for lease from the owner is called as

a tenant and the relation between them is called as tenancy.  The tenant will pay the rent for the

leased property to the owner.

BUYERS: - Buyers are one who purchases the property. Buyers are the one who have

bargaining power. They pay for the property. The property can be in any form. (Residential,

commercial, retail).

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PROMOTIONAL STRATAGIES

ADVERTISING

Print advertising such as that in programs for events, trade journals, magazines, newspapers

Direct mail

Outdoor advertising, such as billboards and bus boards

Broadcast advertising on radio and TV (or Internet sites)

Print advertising such as that in programs for events, trade journals, magazines, newspapers

Direct mail

Outdoor advertising, such as billboards and bus boards

Broadcast advertising on radio and TV (or Internet sites)

MARKETING COLLATERAL

You might choose to produce and distribute materials such as:

Brochures Newsletters

Flyers

Posters

PROMOTIONAL ACTIVITIES

Sponsorships for special events (like fun runs) Participation in community projects and boards of directors

Trade Shows - Your product or service might be one that is suited to exhibiting at a trade show attended by your target audience. Trade shows are typically one- or two- day events that allow businesses to set up exhibits or booths showcasing their products or capabilities.

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Fairs (like Health Fairs, Job Fairs)

Give-aways (like baseball caps and mugs with your logo)

Coupons and free samples

Conducting contests

PUBLIC SPEAKING AND CONFERENCES

Making speeches at conferences, professional association meetings and other events positions you and your company as a leader in your field. Attending conferences is also an opportunity to make valuable contacts that lead to sales.

P UBLICATIONS

Newsletters

Trade journals

Books.

MEDIA RELATIONS CAMPAIGNS

A campaign is your overall plan for contacting and staying in touch with targeted members of the media (reporters). You might want to develop a media relations campaign if it would benefit your company to be mentioned in newspaper, magazine or TV broadcasts viewed by your target audience. Developing press releases, press kits and public service announcements

PERSONAL SELLING

A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

SALES PROMOTION

Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or

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improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions

ABOUT COMPANIES

JR housing:

JR Housing Developers Private Limited was established by Sri. S. Jagadishwara Reddy,

who is the Managing Director of the company with over 15 years of experience in the field of

real estate, he is also the vice president of Karnataka Land Developer's Association.

The company has delivered over 10 million square feet of beautifully developed residential

properties to the satisfied customers spread all over India and abroad. The company has a huge

clientele from different walks of life, while the majority being from the blue chip companies like

Infosys, Wipro, Satyam, HCL, HP, IBM, Intel, Cisco etc, to name a few. Needless to say that the

quality, maintenance and post sales support of the projects developed by the company has

attracted this very high profile customers to invest in their projects. Thousands of happy clients

are a testament to the reputation the company has earned today.

The company has been instrumental in setting benchmarks in developing residential projects in

Bangalore Metropolitan Region by using well designed engineering plans, standard construction

material and strictly conforming to the guidelines issued by the approving authorities. In fact

they were the first to introduce 80ft wide main roads in the BMRDA approved residential

layouts in Bangalore.

JR Housing has a well trained team in each sphere of its business operations, be it engineering,

architecture, layout development, construction, marketing, sales, accounts, front office and back

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office operations. In the process of growth and change, the company has created a brand name

that stands for reliability, high professional standards and long-lasting customer relationships.

Vision: '''To be a globally respected corporation that provides best in class residential spaces

for immediate living or investment.''

Address:

JR HOUSING DEVELOPERS PRIVATE LIMITED

No. 71, 2nd Floor, Outer Ring Road,

Marathahalli, Bangalore - 560 037

Karnataka, INDIA

Projects:

J R Green Park: Off Bangalore Hosur Road::An Integrated Satellite

Township

A premium housing venture spread over 50 acres (21,78,000Sq.ft) of prime residential area,

located off Bangalore-Hosur road in lush green and serene atmosphere. It’s just a 10 minute

drive from Electronic City, which is a well known I.T hub of Bangalore where most of the

software giants have their establishments and just opposite to Karnataka Housing Board's

(K.H.B) Surya City, which has acquired 800 acres of land and the 1st phase of it was developed

with apartment complexes, row houses, individual villas and shopping malls.

The project is located on Anekal State Highway, which is proposed to be a 300 ft wide Road.

Now the Bangalore-Hosur road (NH.7) is being developed to a 10-lane express highway with a

4-lane elevated road, which makes it only a 20 minute drive from Koramangala to our project.

Indian popular heart hospital, Narayana Hrudayalaya and Narayana Health City are less than a 5

minute drive from our project. Many popular educational institutions are located within a radius

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of 10 km from our project. Close proximity to many prominent establishment makes this project

ideal for immediate living with over 10 houses being constructed already.

J R Coco Nest:

A beautiful residential township spread in 15 acres of lush green and pollution free atmosphere

with fully grown coconut plantation which has a resort like ambience.

The project is adjacent to our well developed projects, JR Green Park and JR Gardens off

Bangalore-Hosur Highway. On completion of the elevated express way till Electronic City, it

will be less than a 25 minute drive to Koramangala. It is less than 600 mts off Anekal State

Highway (Proposed 300ft Road), in close proximity to popular landmarks on Bangalore-Hosur

10 Lane Express Highway like Karnataka Housing Board's Surya City (2 Kms), Narayana

Hrudayala Hospital (5 Kms), Electronic City (9 Kms) and various educational institutions.

JR Valley:

JR Valley is situated in serene lush green location between Whitefield and Hoskote off NH .207,

which is one of the fastest growing suburbs in Bangalore. This project is the first phase of our

Mega Township coming up in 200 Acres. It is well connected to the International Airport

through NH.207, a bypass of NH.7, existing 100 ft road and proposed 300 ft road by BMRDA,

which connects Devanahalli and Hosur Road via Whitefield, on completion of which, it will

only be a 20 minute drive to the airport.

The project is adjacent to a developed settlement and the upcoming Karnataka Housing Board's

(K.H.B) Township. It is equidistant from the City and the New International Airport, which

makes it ideal for immediate living. Also, the prime location of this project has ample scope for

appreciation in days to come.

J. R. City:

J.R City is taking shape in the garden city of Bangalore on the eastern side of NH.4

between Hoskote & Whitefield. This project is the 2nd phase of our Mega Township spread over

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200 Acres, which is well connected to International Airport through NH.207, a bypass of NH.7,

which starts from Devanahalli passes through Whitefield and connects to Hosur Road. The

project is just 3 kms off NH.207, the proposed 300ft Wide Road and adjacent to the upcoming

BMRDA Ring Road.

The project is just 12 kms away and less than a 15 minute drive from Whitefield where

the World famous Sri Sai Baba Ashram is located. Also, some of the popular landmarks like Sri

Sai Baba Super Speciality Hopital, International Tech Park (I.T.P.L) and many other private

technology parks, star hotels like Taj I.T.P.L and Radisson's, shopping malls, educational

institutions and various other commercial establishments are located.

JR Garden:

JR Garden Retreat is an extension of our integrated mega township spread across 150

Acres, located in lush green pollution free atmosphere, next to a huge natural lake, off

Bangalore-Hosur Express Highway, adjacent to Karnatka Housing Board's Surya Nagar. It is

just 10 Kms from Electronic City and 5kms from Narayana Hrudayala Hospital and Health City,

in close proximity to various educational institutions.

It is one of the largest residential townships approved by BMRDA developed with 80ft Wide

Main Road and acres of green spaces. The location of the project in prime resdential area makes

it idea for immediate living or investment.

The Flyover between Silkboard Circle and Electronic City, along with the other intermediate

flyovers provide a Seemless connectivity to Koramangala, which is around 20 minute drive from

the project.

JR Hi Tech City

A premium residential township spread over 70 Acres (30,49,200 Sft) of land, facing to

NH.18, Kurnool-Nandyal Highway which is proposed to be a 4-lane express highway, adjacent

to Krishna River canal.

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First of its kind in Kurnool, a township which is residentially converted and approved by

Directors of Town and Country Planning (D.T.C.P), with one of the best educational institutions.

The project is located in the fastest growing areas of Kurnool in a peaceful and pollution free

atmosphere where abundant ground water s available with natural springs.

The project is being developed with following amenities:

80ft Wide Main Roads with Tree lines

Butterfly Street lighting

Landscaped Parks

Children play area & Jogging Track

Water Supply through Overhead Tank

Electrification

Rain Water Drains

Underground Drainage System

Sewage Treatment Plant

All Round Compound Wall

24hr Security

Swimming Pool with Bar counter

Commercial Clubhouse with Conference hall, Gymnasium, Restaurant and Guest Rooms

Area reserved for Nursery School & Primary School.

Provisions for Civic amenities like Hospital, Community hall, Shopping malls etc.

Plot dimensions of 40 x 60, 50 x 60 and 50 x 80 are available.

Layout:

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Raaga Mayuri Builders:

Raaga mayuri builders is an ISO 9001:2000 certified company with a lots of reputation

in the market with good past performance and also ongoing performance. K. J. Reddy is the

chairman and founder of Raaga mayuri construction. Company not only involve in building

residential houses and plots but also Schools, SEZ’s, Hospital and also into the business of

Resorts. They have a good reputation through past project. The company has a hands of project

on progress and also designed a few upcoming projects in advance.

Completed Projects:

Sri Sai Residency, Kurnool

Mayuri Residency, Kurnool

Mayuri Nivas, Kurnool

KJ Enclave, Kurnool

Mayuri Heights, Kurnool

Mayuri Green city, Kurnool

Ongoing Projects:

Green hills, Kurnool

Mayuri Grand, Kurnool

Mayuri Elegant, Kurnool

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Address:

Raaga Mayuri Builders Pvt. Ltd.

Plot No. 55, 50-760 A-121 Gayatri Estate

Kurnool 518002

AP, INDIA

Agri Gold:

Agri Gold has several highly qualified and experienced professionals with good experience in

the field, who are committed to deliver a service of high standards of excellence.

Agri Gold Group of Industries has begun its journey of “INDUSTRIOUS MISSION” of

promoting prosperity by generating opportunities, in the year 1995. The author of the group, Mr.

V R Rao Avvas, is propelling the entire group and its associates on the journey to success with

inspiration and overwhelming optimism.

Agri Gold is a multi-core diversified Industrial Conglomerate and the success dossier promoting

new trends by developing Housing, Residential Layouts, Farm House Lands and Agri Farm

Lands which will give prosperity, pleasure and satisfaction and where the dreams of a common

man has transformed into a reality. Agri Gold Group has brought excellently designed and

integrated planned layouts of farm lands, farm house lands and residential flats / plots, which

cater to the requirements of various classes of the society. The Group has successfully developed

and marketed number of properties.

The group, realizing the business potential, planned the diversification in to Construction

Industry and the division AAVASAM came in to existence through its companies, Agri Gold

Farm Estates Pvt Ltd, Agri Gold Constructions Pvt Ltd, Dream Land Ventures Pvt Ltd, Raam

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Avvas Hotels and Resorts Pvt Ltd, to fulfill yet another human need, shelter. We will be

developing major townships at Hyderabad, Bangalore, Vijaywada, Vishakapatnam and other

cities of Andhra Pradesh, Karnataka and Tamilnadu. Joint-Venture collaborations are already in

place to bring in the best in the Construction Technology. Design development is at an advanced

stage for all these projects that will showcase once again the best of facilities and the themed

ambience.

Projects in Andhra Pradesh:

Fortune Lepakshi, Ananthapur Dist.

Fortune Marakateswara, Kurnool Dist

Fortune Vijaya Durga, Krishna Dist

Fortune Sri Balaji, Vijayawada

Fortune Nagarjuna, Miryalguda

Fortune Mallikarjuna, Chilakaluripeta

Fortune Skandhapuri, Kandhukur

Fortune Navanandi, Nandi Kotkur

Fortune Sri Panduranga, Machilipatnam

Fortune Sri Pada, Kadapa

Fortune Narasimha, Podilli

Fortune Villas, Kurnool

Fortune Villas, Kurnool is our main target project of Agri Gold:

The lifeline to prosperity plays an important role in our lives. We understand your need

for luxury lifestyle and have designed an ideal project on international lines that you will be

proud to own. Agri Gold offers esteemed customers for the first time in the centre of Kurnool,

Fortune Villas, a fantastic project encompassing a gated community with fabulous amenities and

a green landscape with parks, open spaces, trees and exclusive privacy with round the clock

security. Fortune Villas offers you an excellent opportunity to book a beautiful independent

duplex with three bedrooms. For the first time in Kurnool, you will be able to realize your dream

of possessing a beautiful house in a grand location that is the envy of all. The gated community

will have a swimming pool for the first time in Kurnool, plus many exciting facilities like green

30

parks on three sides. Fortune Villas will look upon the blue sky and rolling clouds while

enjoying the exclusive privilege of a landscaped park with enthralling view of the Thunga

Bhadra river. Fortune Villas enhance your lifestyle and the family’s experience of health and

happiness.

The project is being developed on modern construction lines and will provide all

amenities like water, electricity, drainage, telephone, cable TV and Internet connections. The

central location near Mother Teresa Statue on Roja Road in the beating heart of Kurnool brings

you in easy reach of the Municipal Corporation office, the Proposed Keshav Reddy School,

Bhashyam School and St. Paul’s school in the neighborhood. Further, all the major hospitals,

clinics and specialist doctors are very close to the site. You will enjoy the double privilege of an

exclusive location as well as a fabulous project conveniently close to the shopping and

entertainment areas. The promoters are developing the river side area into a landscaped garden

with open spaces for your recreation and enjoyment. Come to Agri Gold Fortune Villas and

usher in prosperity for your future.

Enjoy the good life at Kurnool :

Kurnool is considered to be the best place to live in since it is pleasant and healthy with

less congestion, crowds, traffic and pollution. It is also less expensive since almost everything is

inexpensive. Kurnool is famous for its doctors and hospitals. Schools, colleges, medical,

pharmacy and engineering colleges, are all available for your pleasure.

Celebrate Life’s Memorable Moments :

Agri Gold Fortune Villas project is a meticulously designed adventure in transforming

your dream into a beautiful home for your family to enjoy a wonderful life. Agri Gold has the

expertise, knowledge and imagination to make its vision of a green paradise come true and

which fulfills your dreams to the full.

Mentioned are the Highlight Features of this Project:

Gated community with total area enclosed with compound wall

Club House and Swimming Pool

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Landscaped parks with beautiful view of Tungabhadra river

Secured play area for children

Sophisticated drainage system

Street lights

24 x 7 security Facilities

Gymnasium

Black topped roads with Kerb and Footpaths

Layout:

The Major reasons for boom in the real estate market are:

Easy Availability of Loan and Lower Interest Rate

There is easy access to loans. The housing finance has posted a growth of 29 percent in the last

fiscal, touching 53,685 crores. Further, interest rates on housing loans have come down and are

much lower, between seven to eight percent as compared to 13-14 percent five years ago.

Affordability

Another major reason for boom is that housing in India has become more affordable in recent

times. A decade ago, a house cost nearly 15-20 times an individual’s annual salary. Today the

32

cost of a house has come down to just about three to four times an individual’s annual pay

package.

Increase in number of nuclear families

In the past, owing a home was a dream realized only after retirement. Largely because people

looked at it as a means of providing for their children, having themselves lived in a joint family

setup. Joint families are progressively getting included in the pages of history book even in a

country like ours. Not surprisingly the rise in the number of nuclear families is pushing demand

for housing further to cater to a generation that is not averse to taking risks. Nor are they hesitant

when it comes to paying a price to realize their dreams

Investment Option

Competitive offers by home loan companies combined with good quality projects developed by

reputed builders having a number of amenities have made investing in properties very attractive

wherever there is growth and opportunity, investors are bound to be around and traditionally real

estate has been a safe investment option. Property is looked upon by many as an investment

option that appreciates substantially when compared to other traditional tools of investment.

Migration of Industries

Another major reason for boom in the real market is the migration of industries to smaller towns

leading to rural progress. With villages turning into towns and towns becoming metros, the

property market is growing steadily. This revolution has directly resulted in greater demand for

not just housing but also for the overall real estate market with heightened demand for better

infrastructure, transportation facilities, entertainment zones, shopping malls, multiplexes and

more.

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PROMOTIONAL STRATERGIES THAT ARE COMMONLY USED BY

DIFFERENT BUILDERS IN KURNOOL

1. News paper Advertisements: Newspaper ads best suit you if you are

targeting a mass audience in clearly defined circulation area. It offers

flexibility to choose location, size, prominence and format for your ad.

Newspaper ads bring more credibility and high retention rates for your

message. Through display ads, classified ads, public notes and advertorials,

helps you choose the right platform to reach the mass.

2. TV advertising: A television advertisement or television commercial–often

just commercial or TV ad (US), or advert, commercial, advertisement or

simply just ad (UK/US), or ad-film (India)–is a span of television

programming produced and paid for by an organization that conveys a

message. Advertisement revenue provides a significant portion of the

funding for most privately owned television networks. The vast majority of

television advertisements today consist of brief advertising spots, ranging in

length from a few seconds to several minutes (as well as program-length

34

infomercials). Advertisements of this sort have been used to promote a wide

variety of goods, services and ideas since the dawn of television.

3. Holdings: Banners are the primary form of advertisements on the web. The

standard banner usually appears at the top of a web page, and will link to a

target web page, that may be the homepage of the advertiser or a target page

developed by the advertiser that is more directly relevant to the message of

the banner (a better use). Web advertising can also come in the form of

buttons (smaller, usually in the left hand column), interstitial pages, pop-up

pages or text advertisements. The IAB has developed banner size standards.

4. Site visiting’s: Builders of that site will provide a free visit for the

customers who are interested to buy a plot, villa, apartment from that

concerned builder. This is one of the most influencing factor that effect the

buying behavior of the customer.

5. Schemes: Scheme like monthly installments, lucky draws, free furnishing

are some of the schemes that realtors design to attract more customers

towards their projects.

6. Agents: In countries like INDIA agents play a major role in selling real

estate projects. Agents go around and try to influence the buyers for buying

their houses.

7. Brokers: The most influencing way of selling is through brokers. Brokers

are the most influential persons who can make a real estate project a

successful one or suppress it. They will easily influence the buying behavior

of the buyers.

8. Free land for companies: Some companies provide free lands to

companies those who want to establish company in that vicinity. This will

35

make the persons who work in that company to buy a plot, apartment, villas

etc.

PROMOTIONAL STRATEGIES THAT ARE USED BY EACH COMPANY

JR builders:

1. News paper Advertisements.

2. TV advertisings in local channels.

3. Mailing to their past customers about the new projects.

4. Personal (Direct) selling.

5. Lands to Companies

Raaga Mayuri

1. News paper advertising in local news papers

2. TV advertising in local channels

3. Putting holdings in busy areas

4. Site visits

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5. Schemes

6. Agents

7. Brokers

Agri Gold

1. Concentrate more on Agents, schemes and Brokers.

2. TV advertisements in nationalized channels

3. Site visits

Features that are promoted by different realtors to attract customers:

1. JR construction:

a. Gated community

b. High security

c. Luxurious constructions

d. more open space

e. eco friendly environment

f. Quality of construction.

2. Raaga Mayuri:

a. Deluxe flats

b. Middle class concentrated

c. low cost houses

d. Near to city

e. More connectivity

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3. Agri Gold

a. All kinds of houses are available

b. Concentrates on each and every range of persons

c. City out skirts with less pollution and cool environment

d. Protection

e. Club houses

f. Parks

g. Eat outs etc.

Advertising factors influencing the customer buying behavior in Kurnool

town:[Questionnaire in Annexure 1]

1. Most preferred builder

AGRI GOLD 5

38

MAYURI CONSTRUCTIONS 3

JR HITECH CITY 2

MARUTI CONSTRUCTIONS 8

OTHER 5

2. Source of information

39

FRIENDS 5

ADVERTISING 5

WORD OF MOUTH 8

OTHER 2

3. Factors affecting purchasing Decision

ITS APPEARANCE 3

ITS COST 5

40

ITS LOCATION 6

ITS CARPET AREA 3

OTHER 3

4. Most preferred buyer for first time buyers

MARUTI CONSTRUCTIONS 5

JR HITECH CITY 3

AGRI GOLD 8

41

MAYURI CONSTRUCTIONS 2

OTHERS 2

5. Influence of Reputation of buyer

YES 25

42

NO 15

6. Influence of Material used by buyer on purchasing

YES 23

NO 17

43

7. Type of Infrastructure preferred

ECONOMICAL 13

DELUXE 10

LUXURY 12

PREMIER 3

OTHERS 2

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FINDINGS

This research helped us to explore different real estate companies in

Kurnool and also the strategies they followed in selling their constructions.

This study is done by considering real estate as a product and how this

product could be sold in the market with different strategies followed by

different companies. We also differentiated the strategies each company

followed to attract the customers and how each company is marketing their

product with various promotional activities.

We also studied the growth of real estate market and how will the customers

react to the promotional strategies each of these company follows and also

the preferences of customers in construction and also among builders by

collecting primary data through questionnaire.

SUGGESSTIONS

1. We recommend real estate companies to concentrate more on safety and

location of the constructions because most of the customers prefer them.

45

2. We also recommend builders to promote campaigning of their

constructions because this will make customers have more knowledge

about the builders and constructions which could attract more customers.

3. Builders should collect feedback from customers and design houses

according to their needs so that customers will be more satisfied.

4. Builders should promote house visits for customers so that customers

could get more knowledge about constructions and it will also promote

word – of –mouth.

BIBILOGRAPHY

www.jrhousing.com

www.raagamayuribuilders.com

www.agrigoldproperties.com

www.agrigoldindia.com

Advertising Management Text Book.

46

ANNEXURE

Questionnaire

1. Do you own a house/ apartment

a. Yes

b. No

2. Do you like to buy a house/apartment

a. Yes

b. No

a. If you own a house what is the name of your developer

b. Agri Gold

c. Mayuri Construction

d. JR Hitech city

e. Maruthi Constructions

f. Other

3. How did you came to know about the developer/development

a. Friends

b. Advertising

c. Word – of – mouth

d. other

4. What factors did you consider while buying the house

47

a. Its appearance

b. Its cost

c. Its locations

d. Its carpet area

e. others

5. Why did you prefer this developer

___________________________________________

6. If you are planning to buy a house what factors do you consider

____________________________________

7. If you are planning to buy a house which developer would you buy it from

a. Maruthi Constructions

b. Mayuri Constructions

c. JR Hi-tech city

d. Agri Gold

e. Others

8. Do you consider the reputation of the developer while buying( brought a house)

a. Yes

b. No

9. Do you consider specification like material used while buying a house

a. Yes

b. No

10. What type of infrastructure do you prefer while buying a house/apartment

a. Fully developed layout

b. Plain plots

c. others

11. How would you rate your builder on a scale of 0 – 50 (o is worst – 50 is best)

a. 0 – 10

b. 10 – 20

c. 20 – 30

d. 30 – 40

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e. 40 - 50

49